Dean Foods Company and Agrilink Foods, Inc., announced today that Dean Foods has purchased from Agrilink its Nalley’s pickle business based in Tacoma, Washington. The acquired business sells approximately $40 million annually of pickle, pepper and relish products under the NALLEY’S and FARMAN’S brand names. Terms of the transaction were not announced.

Agrilink Foods is a wholly-owned subsidiary of Agrilink (Pro-Fac Cooperative), an agricultural marketing cooperative based in Rochester, New York. Dean Foods, headquartered in Franklin Park, Illinois is the nation’s largest pickle processor and a leading fluid milk and dairy products processor.

Dean acquired all rights to Agrilink’s pickle business including certain fixed assets, finished inventory, customer lists and other intangibles, although Agrilink will retain all other products carrying the NALLEY’S brand name including prepared canned meal products. Agrilink will continue to contract pack Nalley’s pickle products for a period of two years at the existing Tacoma processing plant, which Agrilink will retain and operate.

Under a related agreement, Agrilink will supply raw cucumbers grown in the Northwestern U.S. to Dean Foods for a minimum ten-year period at market pricing. The quantity of cucumbers to be supplied by Agrilink Cooperative growers will increase over current volumes.

“The acquisition of Nalley’s Pickles continues Dean’s long-term strategy of consolidating regional pickle brands to achieve large-scale cost synergies,” stated Howard Dean, Chairman and Chief Executive Officer of Dean Foods Company. “Although our pickle division has encountered some competitive conditions over the past year, we are confident that this transaction will result in immediate logistics and purchasing efficiencies with manufacturing synergies to follow when production is consolidated.”

“We know that this business will be in good hands with Dean Foods,” commented Agrilink president and chief executive officer Dennis M. Mullen. “They already have a strong presence in this category and have the expertise to continue growing the business. This will clearly have a very positive effect on our members’ deliveries.”

Dean Foods ( is one of the nation’s leading dairy processors and distributors producing a full line of branded and private-label products, including fluid milk, ice cream and extended-shelf-life products, which are sold under the Dean Foods and other strong regional brand names. Dean Foods is the industry leader in other food products, including pickles, powdered non-dairy coffee creamers, aseptically packaged foodservice products, and refrigerated dips and salad dressings. Total Dean Foods’ sales are approximately $4 billion annually.

Agrilink Foods is a $1.2 billion dollar national food company which processes and markets a variety of product lines of branded, private label and foodservice products in 30 facilities located throughout the United States and in Mexico. Included in Agrilink’s portfolio are the Birds Eye, Veg-All, McKenzie, Comstock and Wilderness brands. Agrilink consists of more than 800 member growers, who process fruits, vegetables and popcorn through Agrilink Foods and AgriFrozen.